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BU$INE$$ ALERT!!

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DOC HARRIS

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by DOC HARRIS on Thu Sep 25, 2008 10:13 pm

In light of the current INTER-National Financial crisis, any businessman worth his salt (and this certainly includes Beef Cattle Breeders and Producers of ANY size) must give serious and PURPOSEFUL consideration to the current status of his/her Beef Cattle Breeding Herd! The unsettled condition of the "Stock Market" and the major 'slide' it has taken in the last few days has thrust a spear directly into the guts of every businessman - whatever his vocation, life's work, or occupation may be. That is a given condition. But the important factors to be recognized here are:

NUMBER 1- DO NOT PANIC! I can speak from experience, because in 70+ years of worrying about the "Bottom Line", and "What-Do-I-Do-Now!?" situations in businesses that I have been involved in, all the while trying to raise three boys and getting them educated and married off, I have had my heart in my throat many times! Deep breaths and stomach butterflies are very familiar to me and my dear wife! But keeping a firm grip on my impulses and THINKING logically seemed to drag us through every emergency.

NUMBER 2- TAKE A DEEP BREATH! The oxygen that you infuse into your blood stream will allow your brain to function optimally, and as a result, you can see the reasoning behind your actions and feel satisfied with the results.

The catalyst which prompted my writing this thread is the present and immediate situation in the Beef Cattle Community relating to "DISPERSAL SALES!" I don't believe that I have ever seen so many Dispersal sales involving Large, well-established, successful herds going partly or completely out of business - totally - in such a short period of time! There have been, and always will be, for one reason or another, breeders who will get into the business, perhaps as a tax dodge for a few years, and then disperse their herd. I don't consider them "Beef Breeders" per se. To me they are nothing but "Opportunists" - furthering their immediate interests, without regard for basic principles or eventual consequences. I call them Entrepreneurial Prostitutes - or sometimes similar meaning words that are shorter in length! I have dealt with several in my life, and it isn't a pleasant experience, particularly when it damages your own profession - and YOUR integrity!

But the Herds that I have been aware of this season don't fit that catagory. Some of them are long time, well established operations, which have worked diligently to improve their genetics and methods so as to improve their business and enhance their future. One seldom really KNOWS the underlying reasons for a Dispersal - Illness of the Owner, Retirement, Divorce, Partnership Dissolution, a change of direction of Genetics within the herd itself, there could be any number of justified reasons for a change of direction.

But the important element to consider at this time is the number of opportunities to capitalize on the circumstances, and acquire IMPROVED GENETICS AND PHENOTYPE for your herd that you wouldn't have the chance of getting in perhaps your entire lifetime, if it weren't for the cumulation of events which focuses on QUALITY, and being able to place the emphasis on IMPROVED BREEDING DECISIONS. The availability this season of High Quality seedstock, particularly proven Donors, is exceptional, and a thorough search of those Dispersals , of whichever Breed you may seeking, could prove to be one of the most advantageous moments of your BU$INE$$ life!

In that regard, I have taken the opportunity to ALERT you of the Feature article on the Front Page of CattleToday - today! I urge you to read it in its entirety, and give considerable thought to the improvement of your genetics - this sale season. Sell your low producers, missed breedings, older breeders, or wild-eyed heifers that you were considering keeping as replacements, and take that money, add some INVESTMENT money to it, and really set yourself up for the future!

"MANY PRODUCERS MAKING RESTOCKING PLANS"

Read this carefully, and give a lot of thought to your future operations!

DOC HARRIS
 
Here's a direct link to the article:

http://cattletoday.com/archive/2008/September/CT1731.shtml
 
Succession is the single greatest threat to any business. As each generation comes along the failure rate of the the business increases exponentially. Then add family issues, a business model that was set up for using expensive (used to be cheap) hauled in feed, and concentrated on genetics that required those resources, and voila... failed business.

You're absolutely correct Doc, the business model needs to be reviewed to make sure it works in today's economy.
 

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